Watson Electrical Construction Co. Moves Forward

03.03.2003
PRESS RELEASE

Watson Electrical is excited to announce that as of March 1, 2003, we have acquired certain business operations from Encompass Services Corporation. Our official name moving forward will be Watson Electrical Construction Co. LLC. We will continue to be headquartered in Wilson, NC.

With a healthy balance sheet and large bonding capacity available immediately, we will o­nce again be able to operate and manage the way we have for 68 years. Our management team will remain the same, and we will continue to provide the consistent quality service our customers expect.

We appreciate the services you have provided to us in the past, and hope that our relationships will o­nly strengthen in the future. It is our full intention to pay all pre-petition and post-petition invoices to all vendors and suppliers. Unfortunately, we have many projects where past due monies are being held from us as well. We feel that general contractors
and owners no longer have any reason to hold anything that is past due. There is a plan being implemented to make our vendors whole. We will contact each vendor that has outstanding pre-petition and post-petition invoices. We thank each of you for your patience and support throughout this period of uncertainty within our organization and ask for your
continued support as we execute our plan. Your support and loyalty will be long remembered.

We have taken an assignment of all existing Encompass contracts for the above-mentioned locations, thus there should be no need to rewrite or make changes to existing purchase orders. All performance and payment bonds will remain in full force and effect. In addition, we have executed consents of surety approving assumption of the contracts by Watson Electrical Construction Co. LLC.